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MongoDB (MDB) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest market close, MongoDB (MDB - Free Report) reached $253.50, with a -1.08% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.11% for the day. Meanwhile, the Dow experienced a rise of 1.64%, and the technology-dominated Nasdaq saw an increase of 1.03%.

The database platform's stock has climbed by 4.96% in the past month, exceeding the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16%.

Investors will be eagerly watching for the performance of MongoDB in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.48, indicating a 48.39% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $462.92 million, showing a 9.23% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.26 per share and a revenue of $1.89 billion, indicating changes of -32.13% and +12.59%, respectively, from the former year.

Any recent changes to analyst estimates for MongoDB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MongoDB presently features a Zacks Rank of #3 (Hold).

In terms of valuation, MongoDB is currently trading at a Forward P/E ratio of 113.44. This valuation marks a premium compared to its industry's average Forward P/E of 31.06.

Also, we should mention that MDB has a PEG ratio of 13.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.79 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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